Township micro developers get green light

THE City of Cape Town's ammendment to the Municipal Planning By-Law has been hailed a "big step in the right direction" by micro-developers, NGOs, financiers, academia and professionals working in the field.

- TERRY VAN DER WALT

The amendment introduces a new land-use right that allows homeowners in 194 designated communities to legally build affordable rental units on their properties.

These areas have seen rapid densification over the past decade, particularly through backyarder dwellings and informal structures.

"This Municipal Planning By-Law Amendment is a major milestone for township development and a significant victory for landlords and micro-developers in Cape Town's townships," said Nomfundo Molemohi, uMaStandi portfolio manager, Eastern and Western Cape.

Molemohi was one of the first people to knock on the mayor's door to ask for assitance in unlocking the potential of township micro-developers to help solve the city's low-cost housng crisis.

uMaStandi is one of the property financing companies for micro developers, providing commercial mortgage finance, training, mentorship and guidance to property entrepreneurs wanting to build quality, compliant and sustainable income-producing rental accommodation in townships.

"This Municipal Planning By-Law Amendment represents the kind of inclusive, practical policy shift that our communities have needed for years.

"Previously, most township areas were zoned SR1 or SR2, allowing only up to three dwellings per plot.

"Any attempt to build more required a costly, complicated rezoning process, a major barrier for smallscale developers.

"With this amendment, landlords can now submit building plans (without rezoning) to build between eight and 12 units, depending on erf size.